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K2F - K2fly Limited

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springhill

springhill

Make the drill work for YOU
Joined
20 June 2007
Posts
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11
MC - $370k
SP - 1c
Shares - 37m
Options - Nil
Cash - $93k

Not alot to present from PWW, they seem to be in capital preservation mode at the moment.

Substantial holder, Prospero Capital, have increased their holdings from 2.8m to 3.1m, purchasing on market.

PWW portfolio includes,
Menzies Lakes (uranium)
Linden (gold)
Pelt Wells (gold,tin & tantalum)

None of these 3 seems, to me, to have enough spark to light a fart.

PWW is currently negotiating a share placement.
 
On November 24th, 2016, Power Resources Limited (PWW) changed its name and ASX code to K2fly Limited (K2F).
 
Bugger, made note to myself last night to watch this one for a price above 14.5 and promptly forgot all about it till now. Too late.
Yesterday's chart. I have no idea what it does.
k2f 11 Dec 17.jpg
 
This stock’s been on my watchlist for a while, though just hit 12 month high and seems like it now has strong momentum.

K2F helps tier1 miners manage their resources and land through proprietary software-as-a-service.

They’ve signed up big names like Glencore and Rio Tinto over the last six months to add to existing clients like Fortescue, Anglo Ashanti etc.

But real upside should come next 12 months when miners on NYSE need to meet new regulations. K2F seems perfectly placed with its RCubed software to address those reg. changes.

At $20m market cap, 2020 could be a big year.
 
Looking for potential wave patterns, this one caught my eye.
Seeing 35cents in this, possibly some resistance there, might pullback around 30mark and go again.
Volume not great, respectable not ideal at times for quick exit though.
It’s picking up business and moving in the direction being taken up by the big boys in the mining industry too.
 
Closed the previous week at 26cents, opened Monday 6th at 26.5cents on low volume.
Tuesday and a Wednesday saw some stronger volume with a high of 28.5cents with a a close of 26.5cents.
Volume eased Thursday and more so on Friday however it closed the week 2cents up at 28cents.
It’s software package making inroads in the mining sector, income doubled on the same quarter last year, seems to making good headway.
Small company with a neat package on the way up.
 
@brerwallabi interesting stock that you are following.

Announcement out on the 7/1 and at face value looks very positive......Record invoices.....what more could you want???

upload_2020-1-11_20-40-8.png


Well the market appears to want more, but looking at the chart I am asking myself if there is something more ( fundamental ) that is not picked up on the chart so 35c looks a stretch.

upload_2020-1-11_20-48-55.png
 
Strong and steady momentum. Not many sellers and the ask continues to be hit each day.

I think it’ll be in the 30s very soon.
 
Trav. said:
@brerwallabi interesting stock that you are following.

Announcement out on the 7/1 and at face value looks very positive......Record invoices.....what more could you want???

View attachment 99631

Well the market appears to want more, but looking at the chart I am asking myself if there is something more ( fundamental ) that is not picked up on the chart so 35c looks a stretch.

View attachment 99632
Click to expand...
Chance it might pull back to around 23cents apply fib (38.2%) to wave start from Nov.
28.5cents could be a top in this uptrend, no my eyes are deceiving me its 2.00am should not be trying to read charts this late.
Then again this might be a third wave that could extend up to 35 before a pullback.
Then again .......
Just love these little stocks, who knows could even be a bit like Jumbo - dreaming.
 
Pulled back yesterday to 25cents after making a high of 29cents in the week.
Looks like 25cents now support line substantial buyers there, todays announcement saw it rise again to 27cents.
If the fall to 25 represents a forth wave we may see 25cents tested again to complete the wave.
Nice announcement with Goldfields now added to its ever expanding customer base, another $580k to be booked.
 
K2F continues to grow sales of their software with South32 signing a five year contract worth $880k and introducing into eighteen of their global operations.
K2fly’s Total contract value has grown 45% this quarter and is now approximately AUD$6.9m, an increase of nearly AUD$2m since the quarterly update 29 April 2020.
What I don’t get is the price is not moving forward and more sellers then buyers.
Obviously I have missed something, will have to do a bit more research into what is holding this back.
 
Nice move up from 20cents at the very start of the month to close today at 27.5cents.
The update on 7th July after being digested might be the driver.
Invoices up 60% on year end compared to last year.
Many new contracts signed exceeding expectations.
Cash flow positive last quarter.
No debt.
Almost $3mil in the bank.
Small company with a big future, all the big miners are buying into their products.
 
K2F continues to grow revenue, the past 12 quarters show increased sales every quarter compared to previous years quarters.
 
K2F in a trading halt this morning as an announcement on an acquisition is on the way.
Has been climbing steadily from 20 cents start of August to close at 35.5 cents Friday pulling back healthy from a high of 40 cents a couple of weeks.
Maybe an acquisition to add to solutions in their offerings.
Hope the acquisition fits and will be cash generating and the cost is not diluting.
 
Am considering an entry.
Prevailing macro conditions dictates the area this stock resides in should do well into the mid future. (Imdex rings a bell also).

Screenshot_20201126-112315.png
 
Latest market news issued yesterday from K2F, to me it looks like an acquisition that’s the right fit.
K2F has climbed 4.5cents from the end of January to close today at 38.5cents.

• K2fly to acquire the business assets associated with ‘Decipher for Mining’ (Decipher)
from CSBP Limited (CSBP) and Wesfarmers Chemicals, Energy & Fertilisers Limited
(WesCEF).
• All scrip consideration comprising 11,366,691 ordinary K2fly shares valued at
AUD$3.7 million plus up to 5,345,633 performance shares, both subject to voluntary
escrow periods.
• Wesfarmers subsidiary CSBP will become K2fly’s largest shareholder with 10.13%
holding.
• Decipher provides cloud-based software-as-a-service (SaaS) monitoring and
compliance solutions for mining industry customers.
• Decipher CEO Anthony Walker will be joining K2fly in a senior executive position
along with the core of the Decipher team.
• Decipher will bring additional depth to K2fly’s growing solution suite in tailings and
rehabilitation and extends K2fly's technical assurance and governance footprint inside existing global customers.
 
Q2 FY21 Quarterly Activities Report

Highlights
• SATEVA Acquisition completed and successfully captures increasing share of WA Iron Ore market
• K2fly achieved SAP Endorsed Apps Certification, one of only 11 companies worldwide to achieve this certification
• In Q2 FY21 invoices of $1.56M raised (compared $1.68M in Q2 FY20)
• Negative cash burn for Q2 FY21, includes expenditure to build capability and scale:
... K2F significantly increasing expenditure and investment on new product developments including Tailings Solution and Model Manager
... Investment in SAP Endorsed Apps Certification
... $400K instalment payment for RCubed acquisition, due to achievement of performance milestones
... Additional transaction costs from SATEVA acquisition
... Payment of deferred government costs ($388k) granted during COVID
• Very positive start to Q3 FY21, 3 new contracts, 10% increase in ARR QTD
... >$850k of Purchase Orders already taken for SATEVA
... Alcoa USA signed new 5-year contract in January 2020
... FMG extended its Infoscope agreement to overseas operations
... New Heritage Solution signed for major WA Iron Ore producer
... Total Contract Value (TCV) increased by $1.292M in January
• K2F overall remains cash positive from operations for last 3 quarters (Q4 FY20 to Q2 FY21)
• Cash available on 31 December 2020 was $2.56M, $0.92M in receivables and no debt

.... and now the Decipher for Mining acquisition. Some big names in there, niche solutions for global players, and the WES tech team would be aware of the possibilities. At $4-5M for them, too small to develop but clearly they'll keep an eye on K2F.

Will they need cash soon? probably.
From a while ago:
  • K2Fly can be seen as an exposure to the recovering resources sector, yet one not dependent on the commodities cycle.
  • SAP globally has 770 mining clients (including most majors).
  • the SAP global sales force are now compensated directly by SAP to sell K2fly solutions. The Go To Market (GTM) plans are being finalised to roll out sales capability for SAP sales teams globally. The initial focus is via the Mill and Mining Industry Business Unit but will expand across other industry groups such as Oil and Gas.
 
so, how have the last few years been?
Screenshot_20231102-122251_CommSec.jpg

.
sluggish? need cash? refocus?
.
K2fly Strategic Placement & Strategic Review

Highlights
• Placement firm commitment received from Maptek to raise A$1.0m at A$0.10 per ordinary share, subject to shareholder approval
• Placement pricing represents a premium of 63% to the 15-day VWAP
• Funds raised will be used to strengthen the Company’s balance sheet; for working capital requirements to support continued growth
• Process underway for a strategic review of corporate structure to evaluate options to realise full business potential and shareholder value
 
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